Product Reintroductions And Commission Changes
Last October, due to economic pressures, we made the difficult decision to suspend the sale of our Principal Growth Annuity 5, 7, and 9; our First Rate Annuity 7 and Advantage Growth Annuity 5. At that time, we promised to bring these annuities back to the market as soon as we could.
These core products will be reintroduced on Feb. 15, 2012 with new commission structures. A few of our current products will also see a new commission structure effective Feb. 15.
However, our banner product that most of you are currently selling — the Focused Growth Annuity 5 and 6 — will not see a commission reduction. Details about commission changes will be available soon. My hope is these changes will provide great value to your clients, thus helping you sell more fixed annuities with The Standard in 2012.
Happy Presidents' Day
President's Day is a holiday here at The Standard, and a good time for all of us to remember what a great country we live in.
This year we're gearing up for a Presidential election and whether you're a Democrat, Republican or Independent, you can be assured that it's going to be an interesting, if not exciting year. We'll have some exciting news of our own next month, so stay tuned.
Director, Sales & Marketing
Wall Street Sees The Light On Index Annuities
Reprinted with permission from Jack Marrion, President, Advantage Compendium LTD. Originally published Jan. 2, 2012, in the e-newsletter LifeHealthPRO, a Summit Business Media publication.
In one recent weekly issue of Investment News there were three articles on fixed annuities — this from a periodical that in the past might have mentioned fixed annuities three times in a year. One of the articles was titled "Wirehouses Warming to Indexed Annuities," centering on how wirehouses are now embracing them. As a Merrill Lynch managing director said, "Five years ago, nobody hated the product more than me, but now I've seen the light." Wall Street has discovered index annuities. Why now? They say it's because the products have changed and are no longer "bad" but that's not the real reason. Wall Street is looking at index annuities because they failed to kill them and their traditional solutions aren't working well.
2011 Tax Forms Are In The Mail
The IRS requires that Form 1099R be filed by Jan. 31 of the year following a taxable distribution. Your clients will receive their 1099R no later than the first week in February. Please note, if a distribution was not a taxable event, such as a qualified transfer between financial institutions, a 1099R will not be generated.
While we do our best to ensure that the 1099R is correct, your clients should review the information on the form for accuracy, especially the gross distribution, taxable amount, and IRS distribution code. The reverse side of form 1099R can assist a recipient in understanding each field.
If questions arise, please contact The Standard's customer service team as soon as possible at 800.247.6888 (option 1). If corrections are needed, we will issue a new 1099R form to your client.
Please review this recent compliance alert.
Florida — Rule 69B-215.235: Use of Professional Designations and Certifications
Annuity News is an online newsletter for annuities producers of The Standard.
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Our Financial Strength Is "A" Rated
In a time when some of the world's leading economies are seeing their credit ratings downgraded, you and your clients might like to know The Standard's financial strength is still outstanding.
- Standard Insurance Company was recognized for maintaining an "A" rating or higher from A.M. Best Company since 1928 (July 2011, Best's Review).
- The Standard was honored to be among one of only 14 life/health insurers to consistently achieve an "A" rating (or higher) for more than 75 years.
- Our balance sheet is the cornerstone of our financial strength and has provided us with a foundation for profitability through a wide range of economic cycles.
Source: AM Best Data. Ratings as of May 15, 2011.